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In a major development reshaping the real estate landscape of India's top cities, the average time taken to complete large residential projects has seen a notable reduction, according to recent data from the Anarock Group.
Over the last decade, from 2014 to the first half of 2024, the completion time for large projects comprising 500 or more units in the top seven cities has decreased to 4.9 years, down from 6.1 years in the preceding decade. The data suggest that the decline marks a 20 per cent improvement, attributed largely to factors such as the implementation of RERA (Real Estate Regulatory Authority), advancements in construction technology, and the growing dominance of established, listed developers in the market. Anuj Puri, Chairman, ANAROCK Group, says, "Latest ANAROCK data reveals that the average time to complete large residential projects of 500+ units in top 7 cities clocked in at 4.9 years from 2014-H1 2024, from 6.1 years in the preceding decade. Large and listed players account for nearly 34 per cent of the market today. The stringent rules imposed on project delays by the regulatory authorities have also been a key factor in reducing the completion time." "For most large projects in NCR and MMR, developers had purchased land outright, thereby compromising their overall financial health and delivery capability," says Puri. "On the other hand, most projects in the main southern cities are joint developments where landowners usually get a certain share of the developed units. In NCR, extreme weather conditions and the statutory restrictions imposed on construction when the pollution levels rise also play affect construction timelines in the region. Most developers have gradually reduced their leverage and with stronger financial conditions, are able to focus on execution." As indicated by the data, the shift is not limited to large projects alone. The smaller residential developments of 100 to 500 units also experienced a decrease in completion time, now averaging 4.0 years across the top 7 cities compared to 4.9 years in the previous decade. This trend has not only expedited the delivery of housing units but also contributed to a 13 per cent reduction in unsold inventory from the first half of 2019 to the same period in 2024. Industry experts attribute these improvements to developers' strategic adaptations, including reduced financial leverage and enhanced execution capabilities. Despite regional challenges such as extreme weather conditions in NCR and regulatory constraints affecting construction timelines, the overall outlook remains optimistic as ongoing innovations promise further efficiency gains in the sector. (ANI)
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